Is Maruti Sec. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Maruti Sec. has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 1.81, an EV to EBIT of 1.81, and an EV to Sales ratio of 1.64. These ratios suggest that the stock is trading at a premium compared to its earnings and sales, which is concerning given the negative capital employed and book value.
In comparison to its peers, Maruti Sec. stands out with a PE ratio of -28.69, while Bajaj Finance has a PE of 38.21, and Life Insurance boasts a more attractive PE of 11.49. This stark contrast highlights Maruti's overvaluation relative to its industry. Additionally, the company's recent stock performance has been poor, with a 1-week return of -21.3% compared to a 1.76% gain in the Sensex, reinforcing the notion that the stock may not be a sound investment at its current price of 46.99.